Top Trade GBPNZD goes positive as the Yen continues to rally, AUD and NZD suffer under US stock market correction
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We have not seen a down day like this in a while, DOW was at an all time high exactly 1 week ago. So one must ask, what has changed from last week to this week
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Really good signals on the GBP. Classic Flags on GBPUSD, GBPAUD and GBPNZD, one of my favorite signals.
There is a consolidation on GBPJPY which could break to upside following rest of the pairs. 
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Another big selloff in US stocks today but you would not know that looking at the calm of the FOREX market, we do have a new Top SW Trade GBPCHF, this one you donāt see too often, looking at the daily chart you have that big 200 day moving average to get over if this is going to be a winning trade, see if we donāt get a pullback that first try
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Calmā¦ Wall Street has itās regular October Clearance Saleā¦ causing the USD to weaken over the last 2 days and the XAUUSD to rise over 3800 pipsā¦
Strategy:
SW Analysis of the USD against Goldā¦ USD is Strengtheningā¦ SELL, USD is Weakening BUYā¦
Watch the 4 and 1 Hour, trade the 5 minā¦ So simpleā¦
Anytime there is fear or uncertainty in the Marketsā¦ Gold will strengthenā¦
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Gold fever!!! Iāll be ready for it next time
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Hi Trends,
You are absolutely on target, US stocks have a history of October corrections, Most famous being āBlack Mondayā which occurred Oct 19th, 1987, the market was down like 20% in one day. But instead of a panic sell, had you bought the crash, a $1000 investment would be worth about $21,000 today. Looking at the DOW on a weekly we still have a couple thousand points to go before reaching the lows of earlier this year.
Gold is interesting as it did not respond to this selloff until yesterday
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We seem to be looking at a week of consolidation as the Yen migrates towards #1, Yen tends to move up as US stocks move down, we did have a pretty good bounce in stocks on Friday, was that a reversal or just a dead cat bounce, only the market knows. Year to date Yen has retaken the #1 spot, I still like US dollar for a long-term play
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Looking at the S&P 500, weekly chart, this uptrend is a thing of beauty and hardly looks random, the 40-week moving average which is same as 200 ma on the daily has been a strong point of support, will that continue is the question. Buying the Dip has been a successful strategy for the last 8 years.
I would like to see a test of last weeks low before moving higher, a Monday rally without a retest is not something I would want to chase, a Monday morning selloff with a mid-day reversal giving us a nice bullish pinbar candle is something I would buy
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Does the S&P chart above look like a nightmare to anyone, it is fear mongering like this by the news media that give me confidence that this is just your run of the mill market correction
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The US has never ended itās World War II economy, I like to draw the comparison of the Trade Federation as seen in Star Wars Phantom Menace. Just as seen in the movie, the US likes to bully other counties with threat of military invasion for those who resist. As long the US dollar is the worlds currency it will take more then a small war to crash it
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Another day of consolidation, now less than 2% gap between 1 and 8
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Yen retreats, US stocks rally and Top SW Trade GBPCHF is back in play
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US dollar rallies but most of the market moved very little, I do like the USD long term
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And that quickly the Yen is on top and will likely stay there until this correction in US stocks concludes
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I donāt understandā¦ Please simplify this explanation. Thank you
Hereās a link to a couple explanatory posts for you
Sorry the links donāt copy. I found this around post #1897, which was 29 days ago today.
If that is not what you are questioning, sorry for the interruption.
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Just 8 trading days ago NZD was #8, this run-up in NZD is mostly a spike in Gold prices combined with a correction in US stocks, NZD hardly qualifies as a strong currency and NZDCHF is one I normally donāt trade but it is our new Top SW Trade and I will track it but not trade it, but if it fits your trading plan then have at it, just have a plan and know your risk. This uncertinty in the markets will likely continue until after US Elections, hopfully then we can get some direction
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Forth new Top SW Trade in as many days, as I have warned before, when we get new SW Trades everyday that is not a good trending market. be patient the good times will return
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Hello Dennis:
Letās say I got a new pair today either 1&8 or 2&8 but the signal on the lower time frame is not visible yet for me to enter the trade , this can drag from a few hrs to a couple of days, sometime even a new pair comes in before that happens. When is the best time to say you can discard the waiting and move to another pair.
Can you help me out, from your point of view.
Thanks
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